South Dakota Board of Regents University Financial Ratios

Transcription

1 ATTACHMENT I 3 South Dakota Board of Regents University Financial Ratios This report provides key financial ratios for 2007 through 2011 for all of the South Dakota public universities. The ratio calculations are based on data from the institutions financial statements which include the university foundations in order to give a fuller, more accurate overall picture of the institution s financial state. Each campus provided a narrative to explain any anomalies or fluctuations in the numbers over the five-year period. The four key ratios provided are: 1) ; 2) Net Operating Revenues Ratio; 3) ; and the 4). These ratios are used to answer four financial questions: 1. Are resources sufficient and flexible enough to support the mission? 2. Do operating results indicate the institution is living within available resources? 3. Does asset performance and management support the strategic direction? 4. Are resources, including debt, managed strategically to advance the mission? In addition, a Composite Financial Index is provided which combines the four core ratios into a single score depicting the financial health of the institution as of a point in time. The is intended to address the question of sufficiency and flexibility for support of the mission. The ratio measures the financial strength of the university by comparing expendable net assets, which includes those assets the university can access and spend quickly to meet obligations, to total expenses at the end of every fiscal year. This ratio identifies the university s financial strength and flexibility by identifying how long the university can function by using reserves without the generation of any new net assets. A primary reserve ratio of.40 or 40% is advisable, implying that the university has the ability to cover over 4 ½ months of expenses. Key items that can impact this ratio include principal payments on debt, using net assets to fund capital construction projects, endowment returns, and total operating expenses. Technical Definition Expendable Net Assets / Total Expenses Financial Reserves / Annual Expenses Ratio Benchmark.40 or 40% Operating Cash / Cushion Against Revenue Shocks / Strategic Investments Net Operating Revenues Ratio The Net Operating Revenues Ratio is intended to indicate if an institution is living within its available resources. Institutions need to generate some level of surplus over long periods of time because operations are one source for reinvestment in future initiatives. Short-term deficits may 1

2 ATTACHMENT I 4 occur as a result of strategic decisions. It is when deficits are unplanned or unmanaged and occurring as a result of core operations that evaluation of operations is necessitated. A positive ratio indicates the university is in good financial condition. An organization should establish a target percentage, and establishing a benchmark should be in line with operating growth. A ratio of 2 to 4 percent indicates the university operated within its means and should be maintained over time; however, fluctuations from year to year are normal. A large ratio identifies an operating surplus and a stronger financial position. While a negative ratio indicates an operating loss for the year, universities need to be careful about too large of a positive ratio, indicating under spending on mission critical initiatives. Net Operating Revenues Ratio Technical Definition Net Operating Income / Total Operating Revenues Annual Gain or Loss / Annual Revenues Ratio Benchmark.02 to.04 or 2% to 4% Ability to: Fund operations / Living within means/ Support new initiatives The is intended to assess if the asset performance and management support the strategic direction. The ratio measures whether the organization is financially better off than in the previous year by measuring total economic return or the level of change in total net assets. This ratio is the most comprehensive measure of growth or decline in wealth over time. There is not a specific threshold; however, 3 to 4 percent is a generally acceptable real rate of return. An improving trend in this ratio indicates the university is increasing its net assets and is likely to be in a position to set aside financial resources to strengthen its future financial flexibility. Key items that may impact this ratio include changes in the net operating revenue ratio, endowment returns, capital gifts and grants, capital transfers, and endowment gifts. A 5- year trend should be the minimum used in evaluation. This indicator can be greatly impacted when borrowing money for a capital project and when the capital item is added to Net Assets. Looking at the trend will even out the anomalies. Technical Definition Change in Net Assets / Total Beginning Net Assets Annual Gain or Loss / Net Assets Ratio Benchmark 3% - 4% Change in overall financial health The is intended to address the question of whether financial resources are being strategically managed to advance the mission of the institution. It measures availability of expendable net assets for coverage of debt should the university be required to settle its obligations as of the date on the balance sheet. A 1:1 ratio is desired, indicating adequate net assets to meet obligations. This ratio is one of the most basic determinants of clear financial health and is regarded as governing a university s ability to assume new debt. A ratio of 1.25 or 2

3 ATTACHMENT I 5 greater indicates a strong creditworthy university with sufficient resources to satisfy debt obligations; however, each university should identify the ratio that is right for its mission specific needs. A viability ratio that falls below 1:1 hinders the university s ability to respond to adverse condition, to secure external capital, and to have flexibility to fund new objectives. Key items that may impact this ratio include principal payments on debt, using net assets for capital construction projects, issuance of new debt, and endowment returns. Technical Definition Expendable Net Assets / Total Long-Term Debt Financial Reserves / Debt Ratio Benchmark 1.0 to 1.25 Debt Coverage Composite Financial Index The Composite Financial Index is built with the values of its four component ratios: 1) Primary Reserve, 2) Net Operating Revenue, 3) Return on Net Assets, and 4). Once each of the four ratios is calculated, further weighting is conducted to measure the relative strength of the score and its importance in the composite score. The CFI combines the four core ratios identified above into a single score. The combination, using a prescribed weighting plan, allows a weakness or strength in one ratio to be offset by another ratio result. The CFI reflects a picture of the financial health of the institution at a point in time. A negative CFI is indicative of a university that may be struggling financially. A score of 1.0 indicates very little financial health; 3.0 is the low benchmark and represent a relatively stronger financial position; a 10.0 is the high benchmark. A ratio of 3.0 or above is preferred. Four Step Process Index Benchmark Composite Financial Index 1. Compute the values of the four core ratios 2. Convert the figures to strength factors along a common scale 3. Multiply the strength factors by specific weighting factors (Primary Reserve and Viability weighted 35%; Net Operating Revenue -10%; Return on Net Assets 20%) 4. Total the resulting four numbers to reach the single CFI score Blended measurement of financial health of the institution 3.0 or above is preferred Communicate overall financial health and trends 3

4 ATTACHMENT I 6 Financial Health CFI Score Direction Weaker Financial Position Relatively Stronger Financial Position Strongest Financial Position -1 to 1 0 to 2 2 to 5 4 to 7 6 to 9 8 to 10 Assess institutional viability to survive Reengineer the institution Direct institutional resources to allow transformation Focus resources to compete in future state Allow experimentation with new initiatives Deploy resources to achieve a robust mission KPMG LLP and Prager, McCarthy & Sealy, LLC developed a scale for assessing the values of the CFI: 4

5 ATTACHMENT I 7 Black Hills State University Including Foundation Information 5 Desired Benchmark Net Operating Revenue Ratio Return on Net Asset Ratio Composite Financial Indicator The measures the financial strength of the university by comparing expendable net assets, which includes those assets the university can access and spend quickly to meet debt obligations, to total expenses at the end of every fiscal year. This ratio identifies the university s financial strength and flexibility by identifying how long the university can function by using reserves without the generation of any new net assets. A primary reserve ratio of.40 is advisable implying that the university has the ability to cover over 4 ½ months of expenses. Key items that can impact this ratio include principal payments on debt, using net assets to fund capital construction projects, endowment returns, and total operating expenses. BHSU s ratio, although below the standard of.40, has remained fairly constant over the previous three fiscal years currently showing over 4 months of operating capacity and a recent trend towards the norm. It is important to recognize that this ratio includes the net assets and expenses of the BHSU Foundation, which were impacted by recent market declines. Net Operating Revenue Ratio The Net Operating Revenue Ratio identifies whether or not the university is living within its available resources. A positive ratio indicates the university is in good financial condition. A ratio of.02 to.04 indicates the university operated within its means and should be maintained over time; however, fluctuations from year to year are normal. A large ratio identifies an operating surplus and a stronger financial position. While a negative ratio indicates an operating loss for the year, universities need to be careful about too large of a positive ratio, indicating under spending on mission critical initiatives. BHSU s net operating revenue ratio has remained fairly consistent over the past four years ranging from a low of.026 to a high of.102. The low is reflective of market declines in The Return on Net Assets ratio measures whether the university is financially better off than in the previous year by measuring total economic return or the level of change in total net assets. This ratio provides the most comprehensive measure of the growth or decline in the total wealth

6 ATTACHMENT I 8 of the university over a specific period of time. A ratio of.03 to.04 is the preferred rate of return. An improving trend in this ratio indicates the university is increasing its net assets and is likely to be in a position to set aside financial resources to strengthen its future financial flexibility. Key items that may impact this ratio include changes in the net operating revenue ratio, endowment returns, capital gifts and grants, capital transfers, and endowment gifts. BHSU s return on net assets ratio remained consistent from FY07 to FY09 with a range of.005 to.060 typically above the preferred rate of return. The low of in FY10 was a result of additional bond issues of over $13.5 million. The FY11 ratio increased dramatically to.557 due to the transfer of the Life Sciences Laboratories and the University Center Rapid City to BHSU s net assets from the South Dakota Building Authority. The measures the availability of expendable net assets to cover debt should the university be required to settle its obligations as of the date on the balance sheet. This ratio is one of the most basic determinants of clear financial health and is regarded as governing a university s ability to assume new debt. A ratio of 1.25 or greater indicates a strong creditworthy university with sufficient resources to satisfy debt obligations; however, each university should identify the ratio that is right for its mission specific needs. A viability ratio that falls below 1.1 hinders the university s ability to respond to adverse condition, to secure external capital, and to have flexibility to fund new objectives. Key items that may impact this ratio include principal payments on debt, using net assets for capital construction projects, issuance of new debt, and endowment returns. BHSU s viability ratio has typically dipped below 1.1 in years where additional debt was issued. The addition of debt for the new residence hall will impact this ratio. Composite Financial Indicator (CFI) The CFI combines the four core ratios identified above into a single score. The combination, using a prescribed weighting plan, allows a weakness or strength in one ratio to be offset by another ratio result. A negative CFI is indicative of a university that may be struggling financially. A score of 1.0 indicated very little financial health; 3.0 is the low benchmark and represent a relatively stronger financial position; a 10.0 is the high benchmark. A ratio of 3.0 or above is preferred. The BHSU CFI has remained relatively steady over the past five years, ranging from a low of to a high of 3.9. The score dipped below 1.0 in FY10, primarily due to the market decline. Recovery of those losses and the addition of building assets are reflected in the FY11 CFI. 6

7 ATTACHMENT I 9 Dakota State University Including Foundation Information Desired Benchmark Net Operating Revenue Ratio Composite Financial Indicator The was negative in both FY09 and FY10. This ratio was significantly influenced by the downturn in the market in the fall of 2008 as the DSU Foundation suffered losses similar to other foundations. The markets have started to rebound and so too has the DSU Foundation financial position. The University has also made a concerted effort to improve this primary reserve ratio through conservative budgeting which is reflected in the positive change from FY10 to FY11. Net Operating Revenue Ratio Net Operating Revenue Ratio was negatively influenced by cuts by the legislature and market influences in FY09, resulting in a negative ratio. Return on Net Assets ratio has been increasing slightly over the last few years with the efforts of conservative budgeting by the University. The was influenced in FY09 and FY10 by the University and DSU Foundation debt along with the negative amount available for unrestricted net assets. The FY11 numbers show improvement and the efforts of the University. Composite Financial Indicator (CFI) The DSU Composite Financial Indicator score (CFI) has fluctuated over the past five years. The CFI score reached a low of -1.0 in FY08. This score was significantly influenced by the Component Unit of DSU, the DSU Foundation. As a result of the downturn in the economy, the financial position of the DSU Foundation was negatively impacted and in turn, negatively impacted several of the ratios and the Total CFI score. Also in FY08, $2.9 million in debt was incurred by the University for the renovation of the DSU Science Center. 7

8 ATTACHMENT I 10 Northern State University Including Foundation Information Desired Benchmark Net Operating Revenue Ratio Composite Financial Indicator The Primary Reserve ratio is a snapshot in time showing how long the organization could operate using their expendable net reserves. The lowest ratio occurred in 2009 due to a combination of events. The University cash balance decreased in 2009 as funds were expended on renovation projects and the Foundation felt the impact of the market situation. It is important to keep in mind that on June 30, all state funds have been expended for the year and revenues are lower during the summer resulting in lower cash balances. Net Operating Revenue Ratio The Net Operating ratio represents the operating outcome for the year. A positive number indicates an operating surplus for the year, while a negative number indicates there was an operating loss for the year. Historically, NSU and the NSU Foundation generate a small surplus each year. In 2009, the negative economy resulted in a loss, however, 2010 ended with an operating surplus. The Return on Net Assets ratio measures whether or not the organization is better off financially than it was the year before. As indicated by the negative ratio in 2009, the results can vary significantly from one year to the next so this information should be viewed over a period of time. Historically, NSU and the NSU Foundation have had a positive ratio indicating a small amount of growth each year. The Viability ratio measures the ability of the organization to settle debt with expendable net assets. This ratio falls below the desired 1:1 level mainly as a result of bonds issued by the university for renovation of residence halls and the Student Union. Revenues for the bond payments are collected each year from students room charges and general activity fees. The revenue generates enough funds to meet the current year payment obligations but does not generate funds to place in reserve for future years. Composite Financial Indicator (CFI) The Composite Financial Index (CFI) is the measurement of the overall health of the institution based on the four core ratios. The CFI can range from -1 for institutions that may be struggling 8

9 ATTACHMENT I 11 to survive to more than 9 for institutions with the strongest financial health. The CFI for NSU and the NSU Foundation has been between 2.3 and 3.3, however, it fell to 0.4 in Once again, the fall of the market in 2009 is reflected in the 2009 score. However, the organization has experienced a steady increase in the last two years. 9

10 ATTACHMENT I 12 South Dakota School of Mines and Technology Including Foundation Information Desired Benchmark Net Operating Revenues Return on Net Assets Composite Financial Indicator The primary reserve ratio measures the financial strength of the institution by comparing expendable net assets to total yearly expenses. Expendable net assets represent those assets that can be accessed and spent quickly to satisfy obligations. SDSM&T s primary reserve ratio s decline in FY09 and FY10 was due to increasing total expenses while expendable net assets remain relatively flat, mainly as a result of increased research expenditures and increased interest on new bonds. Net Operating Revenue Ratio The net operating revenues ratio indicates whether total operating activities resulted in a surplus or deficit and if the institution is living within available resources. The fluctuations between FY09 and FY11 are primarily due to an increase in Federal grants and contracts from FY09 to FY10, followed by a decrease in same from FY10 to FY11. The return on net assets ratio determines whether the institution is financially better off than in previous years by measuring total economic return. SDSM&T s return on net assets ratio reflects a declining then recent rebound in rate of return. The Foundation s investment returns have impacted the change in net assets over the last four years. An $11M investment loss in FY09 was followed by a $13.1M gain in FY10. The large gain in Return on Net Assets in FY10 is also due to a large increase in SDSM&T s net assets as a result of $16M in bond proceeds from the South Dakota Building Authority in support of the new Paleontology Building and the addition to the Chemical/Biological Engineering Building. The viability ratio measures the availability of expendable net assets to cover debt should the institution need to settle its obligations as of the balance sheet date. This ratio has remained relatively flat and indicates that SDSM&T, as of the balance sheet date, has sufficient expendable net assets to satisfy debt obligations. Composite Financial Indicator (CFI) The CFI measures the overall health of the institution based on the four core ratios. This measurement typically ranges from -1 for universities with financial struggles to scores of 9-10 for universities with the strongest financial health. SDSM&T s CFI has historically ranged from 10

11 ATTACHMENT I 13 2 to 3 with a dip that occurred during the fall of the market in FY 08 and FY09. The FY11 CFI score of 2.7 represents a relatively steady overall health for SDSMT. 11

12 ATTACHMENT I 14 South Dakota State University Including Foundation Information Desired Benchmark Net Operating Revenues Return on Net Assets Composite Financial Indicator The Primary Reserve ratio is impacted by the amount of SDSU unrestricted net assets and the SDSU Foundation unrestricted net assets. While this ratio has remained relatively stable over the time period, the 2011 ratio reflects a strengthening of SDSU unrestricted net assets as well as SDSU Foundation unrestricted net assets. Net Operating Revenue Ratio The Net Operating Revenue ratio indicates the operating outcome for the year with a positive number indicating a surplus for the year, and a negative number indicating a deficit for the year. SDSU maintains a modest Net Operating Revenue ratio for most years in the time period. The ratios were negative for 2008 and 2009, primarily due to declines in net assets for the SDSU Foundation. The Return on Net Assets ratio reflects the financial condition and whether the institution is financially better off than the previous year. Over the time period, the SDSU Return on Net Assets ratio has improved from a low of in 2007 to a high of in The Viability ratio reflects the availability of expendable net assets to settle debt at the balance sheet date. The decrease in the Viability ratio reflects additional debt incurred for Avera Science, Dairy and Ag Hall renovations, residence halls, food service, and parking facilities as part of the planned improvements to implement SDSU facilities master plans. Composite Financial Indicator (CFI) The SDSU Composite Financial Indicator (CFI) score has remained relatively constant over the period of 2007 to The CFI score has rebounded in the last two years from the negative economic impacts on the SDSU Foundation which impacted several of the financial ratios, most notably the Net Operating Revenue ratio. 12

13 ATTACHMENT I 15 University of South Dakota/SSOM Including Foundation Information 13 Desired Benchmark Net Operating Revenues Return on Net Assets Composite Financial Indicator The primary reserve ratio compares expendable net asset to total expenses. It is an indicator of how long the institution could operate using its reserves. Taken from Strategic Financial Analysis for Higher Education, Reserves are often required for capital expansion or to implement change in the institution s mission. Should these actions be in process, it would be appropriate to expect a temporary decline in this ratio. In FY2009, USD began a capital expansion (Wellness Center and Coyote Village), and the resulting ratio decline is reasonable. Additionally, market values of investments held at the USDF dropped significantly in FY2009, resulting in a USDF deficit Unrestricted Net Assets balance, further lowering the primary reserve ratio. Net Operating Revenues Ratio The net operating revenues ratio measures income/(loss) as a percentage of operating revenues. A positive ratio indicates a surplus. An organization should establish a target percentage, and establishing a benchmark should be in line with operating growth. Generally, a 2 to 4 percent ratio is indicative of an organization living within its resources. USD s ratio has been steady, ranging from 3 to 6 percent annually. The USDF change in net assets was a negative $25 million in FY2009. At the same time, USD had a positive change in net assets of $37 million. So while USD made significant financial gains, the USDF negative change in net assets offset over 2/3rds of the gains. As the financial markets recover, the USDF results have improved, which in turn improved the return on net assets ratio. The viability ratio measures availability of expendable net assets for coverage of debt. A 1:1 ratio is desired, indicating adequate net assets to meet obligations. As stated in Strategic Financial Analysis for Higher Education, If an institution is in the middle of a major capital expansion program, this ratio may well fall to a lower level than an institution that is not. FY2009 dropped below 1.0 because of a $44.5 million bond issue within the last six weeks of the fiscal year. The bond issue was for the construction of two revenue buildings, and to meet the organization s strategic objectives. The debt is reflected in the denominator of this ratio; however, because revenues are received in subsequent years, the unrestricted net assets do not

14 ATTACHMENT I 16 reflect the increased revenues anticipated from the construction of Coyote Village and the Wellness Center. Coyote Village is a residential facility that began revenue collection in FY2011, and the Wellness Center is a revenue facility that began receipt of revenues to support the operation in FY2010. Stabilization of revenues in support of these capital projects has materialized in FY2011 and is reflected in the improvement in the. Composite Financial Index USD s CFI has remained within the Relatively Stronger Financial Position range. As noted in the individual ratios, in FY2009 and FY2010, the USD CFI dropped for two primary reasons. The first was the issuance of an additional debt for the construction of two new revenue producing facilities; Coyote Village a residential housing unit, and the Wellness Center. The debt was issued within the last six weeks of FY2009 with receipt of revenue to support the debt service set to begin in FY2010 for the Wellness Center and FY2011 for the Coyote Village. The second reason for a drop in USD s FY2009 CFI related to the economic downturn and unrealized losses in endowments and other investments on the USD Foundation financial statements. FY2011 s financial statements reflect the realization of the revenues from the new student facilities for payment of the debt service issued in FY2009. Additionally, USD Foundation endowment funds have shown strong performance as the market begins to recover. As presented in the analysis above, USD has invested significant funds in capital expansion. This represents strategic investments to improve competitive position to capture a larger market share of enrollment. Taken comprehensively, the university is investing strategically and with improved future financial wealth in mind. 14

15 ATTACHMENT I 17 South Dakota Board of Regents University Financial Ratios Excluding Foundations The following ratio calculations exclude the Foundations assets and activities for the years FY07 to FY11. It is important to note that the exclusion of Foundation information is contrary to the guidance provided for the calculation of these ratios and makes comparison of the South Dakota public universities to other universities impossible. This data isolates the activities of the universities and should only serve to make comparisons between our own universities and to look for trends over time. The benchmarks are no longer valid because they were developed assuming the Foundations were included. The descriptions of the ratios are still relevant and provide guidance on their use and what may impact them. The is intended to address the question of sufficiency and flexibility for support of the mission. The ratio measures the financial strength of the university by comparing expendable net assets, which includes those assets the university can access and spend quickly to meet obligations, to total expenses at the end of every fiscal year. This ratio identifies the university s financial strength and flexibility by identifying how long the university can function by using reserves without the generation of any new net assets. Key items that can impact this ratio include principal payments on debt, using net assets to fund capital construction projects, and total operating expenses. Technical Definition Expendable Net Assets / Total Expenses Financial Reserves / Annual Expenses Operating Cash / Cushion Against Revenue Shocks / Strategic Investments Net Operating Revenues Ratio The Net Operating Revenues Ratio is intended to indicate if an institution is living within its available resources. Institutions need to generate some level of surplus over long periods of time because operations are one source for reinvestment in future initiatives. Short-term deficits may occur as a result of strategic decisions. It is when deficits are unplanned or unmanaged and occurring as a result of core operations that evaluation of operations is necessitated. A positive ratio indicates the university is in good financial condition. An organization should establish a target percentage, and establishing a benchmark should be in line with operating growth. A large ratio identifies an operating surplus and a stronger financial position. While a negative ratio indicates an operating loss for the year, universities need to be careful about too large of a positive ratio, indicating under spending on mission critical initiatives. Technical Definition Net Operating Revenues Ratio Net Operating Income / Total Operating Revenues Annual Gain or Loss / Annual Revenues Ability to: Fund operations / Living within means/ Support new initiatives 15

16 ATTACHMENT I 18 The is intended to assess if the asset performance and management support the strategic direction. The ratio measures whether the organization is financially better off than in the previous year by measuring total economic return or the level of change in total net assets. This ratio is the most comprehensive measure of growth or decline in wealth over time. An improving trend in this ratio indicates the university is increasing its net assets and is likely to be in a position to set aside financial resources to strengthen its future financial flexibility. Key items that may impact this ratio include changes in the net operating revenue ratio, capital gifts and grants, capital transfers. A 5-year trend should be the minimum used in evaluation. This indicator can be greatly impacted when borrowing money for a capital project and when the capital item is added to Net Assets. Looking at the trend will even out the anomalies. Technical Definition Change in Net Assets / Total Beginning Net Assets Annual Gain or Loss / Net Assets Change in overall financial health The is intended to address the question of whether financial resources are being strategically managed to advance the mission of the institution. It measures availability of expendable net assets for coverage of debt should the university be required to settle its obligations as of the date on the balance sheet. A minimum of a 1:1 ratio is desired, indicating adequate net assets to meet obligations. This ratio is one of the most basic determinants of clear financial health and is regarded as governing a university s ability to assume new debt. A viability ratio that falls below 1:1 hinders the university s ability to respond to adverse condition, to secure external capital, and to have flexibility to fund new objectives. Key items that may impact this ratio include principal payments on debt, using net assets for capital construction projects, and issuance of new debt. Technical Definition Expendable Net Assets / Total Long-Term Debt Financial Reserves / Debt Debt Coverage Composite Financial Index The Composite Financial Index is built with the values of its four component ratios: 1) Primary Reserve, 2) Net Operating Revenue, 3) Return on Net Assets, and 4). Once each of the four ratios is calculated, further weighting is conducted to measure the relative strength of the score and its importance in the composite score. The CFI combines the four core ratios identified above into a single score. The combination, using a prescribed weighting plan, allows a weakness or strength in one ratio to be offset by another ratio result. 16

17 ATTACHMENT I 19 Four Step Process Composite Financial Index 1. Compute the values of the four core ratios 2. Convert the figures to strength factors along a common scale 3. Multiply the strength factors by specific weighting factors (Primary Reserve and Viability weighted 35%; Net Operating Revenue -10%; Return on Net Assets 20%) 4. Total the resulting four numbers to reach the single CFI score Blended measurement of financial health of the institution Communicate overall financial health and trends The CFI reflects a picture of the financial health of the institution at a point in time. A negative CFI is indicative of a university that may be struggling financially. The higher the number the stronger the financial position. 17

18 ATTACHMENT I 20 BHSU Excluding Foundation Information Net Operating Revenue Ratio Return on Net Asset Ratio Composite Financial Indicator DSU Excluding Foundation Information Net Operating Revenue Ratio Composite Financial Indicator NSU Excluding Foundation Information Net Operating Revenue Ratio Composite Financial Indicator

19 ATTACHMENT I 21 SDSM&T Excluding Foundation Information Net Operating Revenues Return on Net Assets Composite Financial Indicator SDSU Excluding Foundation Information Net Operating Revenues Return on Net Assets Composite Financial Indicator USD Excluding Foundation Information Net Operating Revenues Return on Net Assets Composite Financial Indicator